Cryptocurrency exchange Binance will provide fully regulated services to its first country in the Middle East thanks to a license issued by the central bank of Bahrain.
Bahrain was able to issue a license through the Gulf Cooperation Council (GCC). On March 14, the world’s largest exchange and CEO Changpeng Zhao announced a license for a crypto asset service provider.
#TeamBahrain.#Binance Receives First Global Crypto Asset Provider License at the Gulf Cooperation Council (GCC) of the Central Bank of Bahrain.pic.twitter.com/Ndnb4xhA5y — CZ Binance (@cz_binance) March 14, 2022
Binance’s new license allows it to offer crypto services including trading, custody and portfolio management to clients in the smallest economy in the Middle East. Last December, Binance received an in-principle permit to operate in Bahrain. This approval has now become a full license.
Governor of the Central Bank of Bahrain (CBB) His Excellency Rashid Al Maraj said the bank is “developing rules in line with global trends” that “ensure innovation and excellence.”
The license allows Binance to continue its expansion efforts in global jurisdictions while respecting local regulations. Last week, CZ stated that he wants Binance to “identify and invest” in traditional businesses in every sector of the economy around the world with the express intention of pegging them to crypto.
Despite its relative size compared to other countries in the region, or perhaps because of it, Bahrain has been one of the most cryptocurrency-friendly countries in the Middle East. In January, CBB successfully piloted a JP Morgan Onyx cryptocurrency payment system.
It was reported Jan. 10 that the use of cryptocurrency-based payment systems would help the CBB eliminate what Gov. Al Maraj called “existing inefficiencies in the traditional cross-border payment industry.”
Related: Binance gets green light from Canada and Bahrain
Obtaining licenses to operate in each region will certainly help Binance achieve its goals in this regard. His latest notable acquisition was Forbes last month for a whopping $200 million.
The CBB move also arguably puts the country ahead of Dubai as a regional center for cryptocurrencies. Bahrain’s cryptocurrency financial regulations are certainly ahead of those of Dubai, which does not yet allow cryptocurrency exchanges to offer services to their residents.
However, the CEO of Bahrain-based cryptocurrency exchange CoinMENA, Talal Tabbaa, told CNN in February that while the central bank now has more advanced crypto regulations, “if banking were sorted then Dubai could be the number one place for crypto.” .
The banking issue in Dubai could be resolved this year as the Prime Minister of the United Arab Emirates (UAE) Sheikh Mohammed bin Rashid Al Maktoum created the legal framework for cryptocurrencies in Dubai. it was reported that the prime minister said that this structure would protect investors and develop “highly justified international standards” for the management of the cryptocurrency industry.